Glenmark Pharma’s shares weak in trade as firm announces recall of generic skin ointment in United States

According to reports, the regulatory scrutiny of the Indian drug makers has increased this year, as the USFDA reconvened physical inspection of manufacturing sites outside the country, which was halted for two years on account of the COVID-19 pandemic.

Glenmark Pharma’s shares weak in trade as firm announces recall of generic skin ointment in United States
RYALTRIS is an intra-nasal spray and should not be administered orally, instilled in the eyes, and ears or applied to the skin. (FE.com)

Shares of Glenmark Pharmaceuticals were weak in trade on Tuesday after the drugmaker was asked to recall 6.5 lakh tubes of a generic skin treatment drug. According to an enforcement report by the US Food and Drug Administration (USFDA), Glenmark on Sunday announced the recall of the drug because of manufacturing issues.

According to reports, Glenmark Pharmaceuticals Inc, a wholly-owned subsidiary of Glenmark Pharma, initiated a nationwide Class III recall for Tacrolimus ointment used for treating eczema due to a “defective container” in July this year.

Reportedly, the drug recall by manufacturers is expensive because of the additional costs involved, however, in instances of severe defects, it may also trigger a regulatory inspection of the manufacturing facility by the US drug regulator.

Glenmark’s stock has been a major underperformer in the pharma pack this year, as per reports. The shares have fallen more than 26 percent this calendar year, largely due to a diminished outlook for the company’s earnings.

ALSO READ | Pharma majors Glenmark, Sun Pharma and Dr Reddy’s recall products in United States

At 12.50 pm, Glenmark Pharma shares were down 0.4 percent at Rs 385 after falling over 1 percent earlier in the day on the National Stock Exchange. According to reports, the regulatory scrutiny of the Indian drug makers has increased this year, as the USFDA reconvened physical inspection of manufacturing sites outside the country, which was halted for two years on account of the COVID-19 pandemic.

In the last few weeks, several Indian drug manufacturers including Sun Pharma, Dr Reddy’s and Jubilant Cadista have been forced to recall drugs over various issues.

According to a report by news agency PTI, Sun Pharma was recalling 9,552 bottles of epilepsy drug Divalproex Sodium delayed-release tablets due to “failed dissolution specifications”. Moreover, the recall was initiated in the US on June 27 this year.

Similarly, the US-based arm of Dr Reddy’s Laboratories is recalling 5,531 cartons of Lansoprazole delayed-release orally disintegrating tablets in two strengths due to failed dissolution specifications. The recall was initiated on July 13, the report said.

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